Strong developments in central key economic region

06-Feb-2020 Intellasia | NDO | 6:02 AM Print This Post

The central key economic region, which consists of Thua Thien Hue, Da Nang, Quang Nam, Quang Ngai and Binh Dinh, has made strong developments, significantly contributing to the country’s development.

The whole region has a total natural area of 28,114 kilometres, equal to 8.5 percent of the country’s area, stretching along nearly 600 km of coastline. It has diverse terrains and large territorial waters.

Enhancing investment attraction

After four years of implementing the Resolution of the 12th National Party Congress, Quang Ngai Province has gained many successes in improving the business environment and attracting investment. In 2019, Quang Ngai granted investment licenses to 35 projects, including three FDI projects with a total registered capital of nearly VND13.8 trillion, creating jobs for 7,500 workers. Many projects have been implemented, including the Hoa PhatDung Quat iron and steel production complex with total investment of VND52 trillion and the FLC Quang Ngai resort complex with a total area of 1,026 hectares and total investment for the first phase at around VND11 trillion. They are testaments to the local authorities’ efforts to improve the investment environment, accompany enterprises and increase the region’s competitiveness index. Secretary of Quang Ngai Provincial Party Committee Le Viet Chu affirmed: “We always create favourable conditions to welcome investors and give the highest support in term of procedures. Each official and Party member, especially leaders, must often innovate and promote creativity to develop Quang Ngai into a friendly, safe and successful destination for investors”.

In Quang Nam Province, Chu LaiTruong Hai Auto Manufacture and Assembly Plant (Thaco Chu Lai) has become an economic complex with 35 member units and total investment of over VND80.5 trillion after 16 years of investment and development. In Da Nang, a series of international-class tourism projects have been formed and developed, making the city an attractive destination on the world’s tourism map. Accordingly, InterContinental Da Nang Sun Peninsula Resort has been honoured as one of leading luxury resorts in the world as well as having received many other international awards and titles. The central key economic region now has 19 industrial zones, accounting for 5.8 percent of the country. Five major projects, including the Da Nang Information Technology and High-tech Park, the Chu Lai Open Economic Zone, and the Dung Quat, Chan May and Nhon Hoi economic zones, are breakthrough and core projects, creating a driving force for the region’s development as well as significantly contributing to job creation, restructuring and the promoting of socio-economic development. In addition, the coastal motive urban chain, connecting Hue, Chan May, Da Nang, Hoi An, Tam Ky, Van Tuong, Quang Ngai and Quy Nhon, has created a new appearance and an active coastal economic space for the central region. The majestic natural beauty of mountains and the immense sea, along with a world biosphere reserve and pristine nature reserves, have made the landscape in the region more interesting, creating a diversified ecosystem. World cultural heritages such as Hue Imperial Capital, Hoi An Ancient Town and My Son Sanctuary have linked and promoted the tourism development among localities in the region, creating a spill over in tourist attraction for the whole central region.

Expectations for rapid and sustainable development

Analysing the difficulties and advantages for the rapid and sustainable development of the central key economic region, Dr Tran Dinh Thien, former Head of the Vietnam Institute of Economics, said that compared to the northern and southern key economic regions, the central region is weaker in terms of infrastructure and human resources but has greater potential thanks to a large transhipment port, the development of resort tourism and many world heritages. The region also has potential for the development of the shipbuilding industry and maritime services. With lower investment costs than in other regions, the central key economic region has become an attractive destination for both domestic and international investors. For example, Da Nang City has made breakthroughs in terms of the speed of urbanisation and high-class tourism. Other localities, such as Thua Thien Hue, Quang Nam, Quang Ngai and Binh Dinh, have come on leaps and bounds, turning disadvantages into advantages. The long coastline, with mostly sandy hills and lots of sunshine and wind, have become the locations of international luxury resorts. Rivers and streams, with steep slopes, have contributed to developing efficient ladder hydropower systems. The high hours of sunshine have offered favourable conditions for the development of solar power. The steep coasts, along with horizontal mountains, have been formed into deep-water ports.

However, the development of the central key economic region is still not commensurate with its potential, strengths and expectations. The head of the consultancy group for the economic development of the central key economic zone, Dr Tran Du Lich, noted that the core problem is still the lack of coordination mechanisms for efficient economic development in the linkage between localities. The resources from the central agencies should focus on the investment for infrastructure connection, firstly on the coastal road from Thua Thien Hue to Binh Dinh that is expected to stimulate the development of the coastal urban chain. It is crucial to associate the central region’s development with the Central Highlands through the east-west highways.

Chair of Vietnam Urban Development Planning Association, Tran Ngoc Chinh, said that the central ministries and agencies as well as provinces and cities in the central key economic zone should actively enhance their coordination to accelerate the progress of regional planning. Each locality should also adjust their plans in accordance with the region’s characteristics, further focusing the linkage. It is essential to pay strong attention to constructing urgent infrastructure works; setting plans to expand and develop airports; and giving priority to developing logistics centre network in the region.

Being considered as the nucleus of the region, Da Nang City is expected to develop more rapidly to become a driving force to the region’s growth. The Politburo’s Resolution No.43-NQ/TW on the building and development of Da Nang until 2030, with a vision to 2045, emphasized the city’s development towards a modern and smart eco-city with international stature and unique identities. The city should enhance the rapid and sustainable economic development, considering the improvement of people’s lives as a key task, focus on developing three major pillars: tourism, hi-tech industry and marine economy; and ensuring security, defence, the sovereignty over seas and islands and social safety and order. Thanks to great attention from the central agencies and the city’s efforts, Da Nang is expected to promote its advantages to enter into a new growth cycle, along with the central key economic zone.


Category: Economy, Vietnam

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